What is Cup and Handle Pattern? Cup and Handle Pattern is a Classical Pattern which resembles a cup with handle, where the cup is in the shape of a ‘U’ or a rounding bottom and the handle is a price channel or triangle pattern drifting downward.
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Flag and Pennant Patterns are consolidation patterns that occur after a sharp advance or decline. Since it is a continuation pattern, the preceding trend continues after the Pattern is broken in the direction of the trend.